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Auditing & Assurance 101 Practice Test: Internal and Governmental Financial Auditing and Operational Auditing
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Here are some basics of internal and governmental financial auditing and operational auditing: Financial audit: A statutory requirement for registered companies, a financial audit is a review of a client's financial statements to ensure they are accurate. The goal is to obtain an independent opinion on the accuracy of the financial statements. Operational audit: A review of an organization's systems, procedures, and internal controls, the goal of an operational audit is to evaluate the efficiency and effectiveness of these systems. The audit may also make suggestions for... Show more
Auditing & Assurance 101 Practice Test: Internal and Governmental Financial Auditing and Operational Auditing
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25 Questions

1. An operational auditor may use 'engineered standards' as evaluation criteria.
2. Which of the following is not a similarity between external and internal auditors?
3. Benchmarking is one source of evaluation criteria for completing an operational audit.
4. An audit conducted in accordance with the Yellow Book must include an audit report that states the audit was performed in accordance with:
5. The two most important qualities for an internal auditor to possess are independence and competence.
6. The 'Red Book' specifies all auditing standards issued by the U.S. General Accounting Office.
7. Statements on Internal Auditing Standards are issued by the:
8. The two most important qualities for an operational auditor are:
9. Operational audits are often categorized as functional, organizational, or special assignments.
10. The primary source of authoritative literature for doing government audits is the:
11. Effectiveness is concerned with whether defined goals are achieved, whereas efficiency is concerned with whether the goals are achieved with a minimum use of resources.
12. Effectiveness refers to the degree to which costs are reduced without reducing efficiency.
13. One disadvantage of functional auditing is the failure to evaluate interrelated functions.
14. Efficiency refers to the degree to which costs are reduced without changing effectiveness. The auditor's opinion as to the appropriateness and sufficiency of evidence in forming an opinion on the financial statements.
15. Which is not a purpose of an economy and efficiency audit?
16. Government auditing standards are included in the Yellow Book.
17. Internal auditors should have the authority to require implementation of suggestions for improvement.
18. When performing an operational audit, the internal audit team must first determine that:
19. The Single Audit Act requires that an audit be conducted for recipients who receive total federal funds in any fiscal year of:
20. Independence is a fundamental ethical principle for internal auditors.
21. Which of the following groups could not be involved in an operational audit?
22. Integrity is one of the IIA's ethical principles.
23. The formal name of the Yellow Book is Government Auditing Standards.
24. Professional guidelines for performing internal audits for companies are not as well-defined as for external audits.
25. Current professional auditing standards allow external auditors to use internal auditors for direct assistance on external audits.